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Author: Justin Caron Publisher: ISBN: Category : Equilibrium (Economics) Languages : en Pages : 67
Book Description
Almost all of the literature about the growth of income inequality and the relationship between skilled and unskilled wages approaches the issue from the production side of general equilibrium (skill-biased technical change, international trade). Here, we add a role for income-dependent demand interacted with factor intensities in production. We explore how income growth and trade liberalization influence the demand for skilled labor when preferences are non-homothetic and income-elastic goods are more intensive in skilled labor, an empirical regularity documented in Caron, Fally and Markusen (2014). In one experiment, counterfactual simulations show that sector neutral productivity growth, which generates shifts in consumption towards skill-intensive goods, leads to significant increases in the skill premium: in developing countries, a one percent increase in productivity leads to a 0.1 to 0.25 percent increase in the skill premium. In several countries, including China and India, simulations suggest that the historical growth experienced in the last 25 years may have led to an increase in the skill premium of more than 10%. In a second experiment, we show that trade cost reductions generate quantitatively very different outcomes once we account for non- homothetic preferences. These imply substantially less predicted net factor content of trade and allow for a shift in consumption patterns caused by trade-induced income growth. Overall, the negative effect of trade cost reductions on the skill premium predicted for developing countries under homothetic preferences (Stolper-Samuelson) is strongly mitigated, and sometimes reversed.
Author: Justin Caron Publisher: ISBN: Category : Equilibrium (Economics) Languages : en Pages : 67
Book Description
Almost all of the literature about the growth of income inequality and the relationship between skilled and unskilled wages approaches the issue from the production side of general equilibrium (skill-biased technical change, international trade). Here, we add a role for income-dependent demand interacted with factor intensities in production. We explore how income growth and trade liberalization influence the demand for skilled labor when preferences are non-homothetic and income-elastic goods are more intensive in skilled labor, an empirical regularity documented in Caron, Fally and Markusen (2014). In one experiment, counterfactual simulations show that sector neutral productivity growth, which generates shifts in consumption towards skill-intensive goods, leads to significant increases in the skill premium: in developing countries, a one percent increase in productivity leads to a 0.1 to 0.25 percent increase in the skill premium. In several countries, including China and India, simulations suggest that the historical growth experienced in the last 25 years may have led to an increase in the skill premium of more than 10%. In a second experiment, we show that trade cost reductions generate quantitatively very different outcomes once we account for non- homothetic preferences. These imply substantially less predicted net factor content of trade and allow for a shift in consumption patterns caused by trade-induced income growth. Overall, the negative effect of trade cost reductions on the skill premium predicted for developing countries under homothetic preferences (Stolper-Samuelson) is strongly mitigated, and sometimes reversed.
Author: Charles R. Hulten Publisher: University of Chicago Press ISBN: 022656794X Category : Business & Economics Languages : en Pages : 528
Book Description
Over the past few decades, US business and industry have been transformed by the advances and redundancies produced by the knowledge economy. The workplace has changed, and much of the work differs from that performed by previous generations. Can human capital accumulation in the United States keep pace with the evolving demands placed on it, and how can the workforce of tomorrow acquire the skills and competencies that are most in demand? Education, Skills, and Technical Change explores various facets of these questions and provides an overview of educational attainment in the United States and the channels through which labor force skills and education affect GDP growth. Contributors to this volume focus on a range of educational and training institutions and bring new data to bear on how we understand the role of college and vocational education and the size and nature of the skills gap. This work links a range of research areas—such as growth accounting, skill development, higher education, and immigration—and also examines how well students are being prepared for the current and future world of work.
Author: Irene Brambilla Publisher: ISBN: Category : Economics Languages : en Pages : 35
Book Description
The returns to schooling or the skill premium is a key parameter in various literatures, including globalization and inequality and international migration. This paper explores the skill premium and its link to exports in Latin America, thus linking the skill premium to the emerging literature on the structure of trade and development. Using data on employment and wages for over five million workers in sixteen Latin American economies, the authors estimate national and industry-specific skill premiums and study some of their determinants. The evidence suggests that both country and industry characteristics are important in explaining skill premiums. The analysis also suggests that the incidence of exports within industries, the average income per capita within countries, and the relative abundance of skilled workers are related to the underlying industry and country characteristics that explain skill premiums. In particular, higher sectoral exports are positively linked with the skill premium at the industry level, a result that supports recent trade models linking exports with wages and the demand for skills.
Author: Irene Brambilla Publisher: ISBN: Category : Economics Languages : en Pages : 0
Book Description
Abstract: The returns to schooling or the skill premium is a key parameter in various literatures, including globalization and inequality and international migration. This paper explores the skill premium and its link to exports in Latin America, thus linking the skill premium to the emerging literature on the structure of trade and development. Using data on employment and wages for over five million workers in sixteen Latin American economies, the authors estimate national and industry-specific skill premiums and study some of their determinants. The evidence suggests that both country and industry characteristics are important in explaining skill premiums. The analysis also suggests that the incidence of exports within industries, the average income per capita within countries, and the relative abundance of skilled workers are related to the underlying industry and country characteristics that explain skill premiums. In particular, higher sectoral exports are positively linked with the skill premium at the industry level, a result that supports recent trade models linking exports with wages and the demand for skills
Author: Irene Brambilla Publisher: ISBN: Category : Languages : en Pages :
Book Description
The returns to schooling and the skill premium are key parameters in various fields and policy debates, including the literatures on globalization and inequality, international migration, and technological change. This paper explores the skill premium and its correlation with exports in Latin America, thus linking the skill premium to the emerging literature on the structure of trade and development. Using data on employment and wages for over seven million workers from sixteen Latin American economies, the authors estimate national and industry-specific returns to schooling and skill premiums and study some of their determinants. The evidence suggests that both country and industry characteristics are important in explaining returns to schooling and skill premiums. The analyses also suggest that the incidence of exports within industries, the average income per capita within countries, and the relative abundance of skilled workers are related to the underlying industry and country characteristics that explain these parameters. In particular, sectoral exports are positively correlated with the skill premium at the industry level, a result that supports recent trade models linking exports with wages and the demand for skills.
Author: Irene Brambilla Publisher: ISBN: Category : Languages : en Pages : 39
Book Description
The returns to schooling or the skill premium is a key parameter in various literatures, including globalization and inequality and international migration. This paper explores the skill premium and its link to exports in Latin America, thus linking the skill premium to the emerging literature on the structure of trade and development. Using data on employment and wages for over five million workers in sixteen Latin American economies, the authors estimate national and industry-specific skill premiums and study some of their determinants. The evidence suggests that both country and industry characteristics are important in explaining skill premiums. The analysis also suggests that the incidence of exports within industries, the average income per capita within countries, and the relative abundance of skilled workers are related to the underlying industry and country characteristics that explain skill premiums. In particular, higher sectoral exports are positively linked with the skill premium at the industry level, a result that supports recent trade models linking exports with wages and the demand for skills.
Author: Emanuela Di Gropello Publisher: World Bank Publications ISBN: 0821386158 Category : Business & Economics Languages : en Pages : 292
Book Description
In Indonesia, the past two decades have been a time of great progress but also massive transformations and abrupt setbacks. In this context, this book reviews the main characteristics of - and trends in - demand for skills in Indonesia. It seeks to document the existence of a possible skills mismatch between employer demands and the available supply, the contribution of the education and training sector to this mismatch, and possible measures to improve the education and training system's responsiveness to what the labor market and the economy need. In today's job market in Indonesia, there appears to be a premium on theoretical and practical knowledge of the job. While skills do not appear to be yet among the most important constraints for the economy, the situation is different for larger more export-oriented manufacturing firms. Subjective assessments of difficulties of matching needs with available skills provide evidence that skills are becoming an issue overall in Indonesia. The widest gaps across professional profiles are for English and computer skills followed by thinking and behavioral skills. Theoretical and practical knowledge of the job are also considered to be weak. There are important gaps in creativity, computing and some technical skills for young workers. English remains the largest gap. Five general skill related priorities can be highlighted for Indonesia. First, the country needs to improve skill measurement to get a fuller understanding of skill needs and gaps. Second, it is urgent for Indonesia to address the still unsatisfactory quality and relevance of its formal education, including higher education. Third, the country needs to set-up multiple pathways for skill development. Fourth, the country needs to develop an integrated approach to tackle skill development for youth. Fifth, Indonesia should also tackle labor market constraints which affect the skill matching process.
Author: Raj Nallari Publisher: World Bank Publications ISBN: 082138905X Category : Business & Economics Languages : en Pages : 177
Book Description
With shifting global patterns there has been rethinking about the labor market. This book takes a comprehensive look at the macro and micro levels by examining global trends, job creation policies, labor market policies, education and labor, entrepreneurship, and globalization. .
Author: Ximena Del Carpio Publisher: World Bank Publications ISBN: 1464808910 Category : Business & Economics Languages : en Pages : 192
Book Description
Ukraine’s economic progress since its independence in the early 1990s has been uneven, in part due to the slow pace of reforms, unfavorable demographic factors, and low productivity. One of the key factors limiting success is the inadequacy of the skills of Ukraine’s workforce with the needs of a modern economy. While the country demonstrates a strong record of educational attainment and acquisition of foundational skills, the post-secondary education and training system fails to equip workers with the right advanced skills for labor market success. This study provides new evidence on the nature of skills valued in the labor market, reviews the institutional constraints hindering the development and use of workforce’s skills, and proposes a set of policy options. This study argues that, to improve skills formation and use, Ukraine needs to renew its public policies on post-secondary education, labor-market intermediation and information, and labor regulations. Drawing on household and firm surveys, the study finds that workers need a mix of advanced cognitive skills (like problem solving and communication), socio-emotional skills (like self-management and teamwork), and technical skills (like computer programing or sale skills) to be successful in the labor market and meet employers’ demand. These skills are not necessarily explicitly taught in traditional learning settings. Policy makers should therefore rethink the content of post-secondary education and training to focus on the development of skills for the labor market rather than only attendance. To do so, establishing steady links between education institutions and enterprises, by setting up occupation standards and adapting curricula to firm demand, is crucial. An essential instrument to identify the demand for skills and facilitate fruitful investments in skills formation is a labor market information system—which provides reliable information on labor market prospects across post-secondary education fields and institutions and job requirements and characteristics to students, their families, and jobseekers. Nonetheless, a better formation of skills would only be beneficial if most of the workforce can put them at use in jobs, promoted by better labor regulations.
Author: Emanuela Di Gropello Publisher: World Bank Publications ISBN: 0821384961 Category : Business & Economics Languages : en Pages : 274
Book Description
The Filipino economy has experienced overall growth over the last 20 years, but the growth of the manufacturing sector has been sluggish, and the country has lost innovation capacity. Regaining momentum will depend on many factors, but skills have a key role to play in supporting the growing service sector, improving the competitiveness of the manufacturing sector, and enhancing the long-term ability of the country to innovate and adapt and assimilate new technologies. 'Skills for the Labor Market in the Philippines' analyzes the functional skills with which workers need to be equipped to be employable and support firms competitiveness and productivity, and evaluates the role of the education and training system in providing these skills. Based on an innovative survey of employers, this book is the most comprehensive attempt thus far to review the skills that matter for the labor market. The book reveals that a dramatic increase in educational attainment occurred in just under two decades in the Philippines. However, in light of the growing demand for skills, the authors also make it clear that there are indications of emerging skills gaps, suggesting that skills are becoming a constraining factor for economic growth. The authors flesh out several policy implications, which should provide a valuable contribution to improving the country s education and training system. The book is primarily intended for the policy makers and researchers who shape the delivery of education and training in the Philippines and other middle-income countries.
Author: Justin Caron
Author: Justin Caron
Author: Charles R. Hulten
Author: Irene Brambilla
Author: Irene Brambilla
Author: Irene Brambilla
Author: Irene Brambilla
Author: Emanuela Di Gropello
Author: Raj Nallari
Author: Ximena Del Carpio
Author: Emanuela Di Gropello